The Tricky Trees have been out of the top division since their relegation back in 1999.
However, having been handed the job for a second time, Davies has expressed his determination to see the club return to the top flight of English football.
"We've got to look to take this club to where everyone thinks it belongs," he told reporters. "That is certainly the ambition of the owners, that is certainly the ambition of the majority of the people at this football club and that is also my ambition."
Forest are currently 13th in the Championship table.